04 September, 2015

“Argentina’s
central bank has ordered HSBC to remove its local CEO within 24 hours
over his alleged failure to thwart terrorist financing, money
laundering, and tax evasion. In March, Argentinian authorities
ordered HSBC to return a mammoth $3.5bn (£2.3bn) from an array of
accounts nestled offshore. Argentina had accused the scandal-ridden
bank of assisting over 4,000 clients in evading taxes by funneling
their illicit cash to secret bank accounts in Switzerland. But HSBC
has consistently denied the allegations, insisting that it respects
Argentine law.”

“Nevertheless,
on September 1 the Central Bank of Argentina demanded that HSBC’s
regional president Gabriel Martino and vice president Miguel Angel
Estevez both be removed from their roles. It argued neither Martino
nor Angel Estevez had taken adequate measures to thwart 'money
laundering and the financing of terrorist activities.' The head of
Argentina’s tax authority Ricardo Echegary welcomed the move as a
'healthy decision.'”

“HSBC
is currently facing investigations in several states over allegations
it helped clients evade and avoid taxes. In February, it emerged that
HSBC’s Swiss private banking arm had aided royalty, criminals,
terrorists and drug dealers in dodging taxes. The allegations were
made by ex-HSBC employee and whistleblower Herve Falciani. A colossal
cache of files leaked by Falciani to the International Consortium of
Investigative Journalists (ICIJ) shed light on these practices. The
files reportedly revealed the bank’s complicity in tax evasion and
aggressive tax avoidance between 2005 and 2007. Despite HSBC’s
global transgressions, no criminal proceedings have been brought
against the bank in Britain.”